Thanks for the replies, but this is a 6-year old thread.
We did this 6 years ago, then got rid of these kiosk stations, then recently had to investigate this again.

If I recall, the answer was that I had to specify the entire path name to IE in policy. Merely entering iexplore.exe didn't work, but using "C:\Program Files\Internet Explorer\iexplore.exe" -k sitename did.

A startup script does not accomplish the same thing, as the user can close the browser and have a desktop, which we didn't want.

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